FitchRatings has upgraded the long-term issuer default rating (IDR) of Peach Property Group AG, a real estate company focusing on investing and managing residential rental properties in Germany, to ‘BB’ with a stable outlook. The unsecured debt rating was raised to “BB+”, one notch below investment grade.
The upgrade reflects expected improvements in Peach Property Group’s financial profile in terms of EBITDA und interest cover, combined with the improvements already achieved in its business and financial profile. FitchRatings forecasts that Peach Property Group’s EBITDA will continue to improve significantly based on further increases in rental income from acquisitions made and the scalability of its operating platform. In addition, FitchRatings cites the increased diversification already achieved, larger scale and improved profitability together with a larger unencumbered asset base and thus better access to further growth capital as reasons.
Dr. Thomas Wolfensberger, CEO of Peach Property Group AG, said: “We see the upgrade of our rating also by FitchRatings as a well-founded expression of the capital market’s confidence in our solidity, the scalability of our digital management platform and our further growth capacity.”
“The upgrade of our company by the two leading rating agencies Fitch and S&P this week reduces the financing costs of future growth steps correspondingly and increases our room for maneuver,” added Thorsten Arsan, Chief Financial Officer of Peach Property Group AG.
